Hindus and Indians are going home to celebrate Diwali with family and friends in India, and the holidays are coming up. But those who will fly in the holiday season are struggling in large part because of the high domestic airfares on a number of important routes.
Because demand for travel is rapidly rising ahead of the festival, tickets are going up. Travellers booking flights between November 6 and November 8 will probably get the highest fares, with return ticket prices on some routes touching as much as ₹18,000.
Airlines are also increasing fares for routes connecting big metropolitan cities significantly and that is reflected in travel industry data, according to travel industry data. The increase is more visible on flights from Delhi, one of India’s best-known and busiest airports.
Return Airfares on Key Routes
Passengers who are searching for return tickets during the Diwali period may have the following approximate fares:
- Delhi – Hyderabad: Up to ₹18,000 (Air India)
- Delhi – Kolkata: Up to ₹17,000 (Air India)
- Delhi – Ahmedabad: Up to ₹17,000 (Air India)
- Delhi – Bengaluru: Up to ₹16,000
- Delhi – Mumbai: Up to ₹13,000 (IndiGo)
These fares are significantly higher than regular off-season ticket prices and reflect the intense demand for air travel during the festive period.
Why Is Flight Ticket Price So High?
The main reason for the surge in airfare demand is the rise in passenger demand in the run-up to Diwali. Thousands of professionals, students and migrants travel from Bengaluru, Mumbai, Delhi, Hyderabad and Chennai to their home cities during the festival season.
Bengaluru sees a large outflow of travellers at major festivals because of its large workforce from various states. As demand rises, cheaper fare categories sell out quickly, leaving only higher-priced seats available.
Airlines typically follow a Dynamic Pricing model in which ticket prices increase when seat availability decreases. Passengers who book closer to the departure date are likely to pay much higher prices than those who book further in advance.
Reduced Flight Capacity adds Pressure
The fare hike is due to a reduction in airline seats.
According to aviation data agency OAG, domestic airline seat capacity in India declined by around 5.6% in September. This has affected various routes.
Among India's largest carriers:
- IndiGo reportedly reduced seat capacity by about 4.5%.
- Air India reportedly reduced seat capacity by around 8.8%.
There are industry experts who believe that the increase in maintenance costs, fleet management issues and operational adjustments have led to the reduction of available seats.
Dominance of IndiGo and Air India
The impact of capacity reduction is even more significant because IndiGo and Air India collectively account for more than 90% of India’s domestic aviation market.
In the case of these two airlines reducing seat availability, the effect is felt across the industry. In high-demand periods like Diwali, when capacity is low, demand and supply will not match, and fares will be higher.
Travel analysts say the lack of seats on popular routes is so limited that the demand for cheap tickets on the most popular routes is already making it hard to obtain affordable fares. Prices could go up more as departure dates get closer.
Why should Travellers Book Early?
Generally, festival-goers are advised to book tickets as early as possible. They will usually be able to access lower fare categories before they sell out.
Flexible travellers might also take the trip at least a couple of days before or after the peak travel season to find better prices. Travel costs can also be reduced if there are airport alternatives and connecting flights.
More Price Hikes Possible
If demand continues to grow, industry analysts forecast ticket prices will continue to rise in the weeks to come. With several weeks left before Diwali and demand continuing to increase, ticket prices will get more expensive as long as demand is maintained. The routes in which big metros and state capitals meet will be under the most pressure.
For those looking to plan their holiday trips, the message is straightforward: Late booking can result in much higher costs. With airlines adjusting prices based on demand and seat availability, Diwali travellers should be prepared for one of the most expensive domestic travel seasons in recent years.
